A camera manufacturer spends $2,000 each day for overhead expenses plus $9 per camera for labor and materials. The cameras sell
2 answers:
Answer:
c250; $850
Step-by-step explanation:
Given:
A camera manufacturer spends $2,000 each day for overhead expenses plus $9 per camera for labor and materials.
The cameras sell for $17 each.
Solution :
Let no. of cameras sold per day =x
Since he spend $2000 each day and $9 per camera each day
Cost of labor and materials of 1 camera = $9
Cost of labor and materials of x cameras = 9x
so, his total cost for one day = 2000+9x
now selling price of each camera is $17
Selling price of x cameras = $17x
Now we are asked How many cameras must the company sell in one day to equal its daily costs?
⇒17x= 2000+9x
⇒2000=8x
⇒
⇒
Thus, 250 cameras must be sold in one day to equal its daily costs
Now , If the manufacturer can increase production by 50 cameras per day.
So, selling price of 50 cameras = 50*17 =$850
So, $850 would be their daily profit
Hence If the manufacturer can increase production by 50 cameras per day $850 would be their daily profit
Thus Option C is correct .
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